Turkey's domestic producer Petkim is currently offering LDPE and homo-PP at prices close to par after the company’s PP prices had traded with a large premium above LDPE from late June to mid-August. The company’s LDPE prices had traded with a premium above its PP prices for the entirety of 2010 as well as the first few months of 2011, until PP prices surpassed the LDPE level.
Petkim's LDPE film traded at a premium against the company’s homo-PP for the entirety of 2010, with size of the premium fluctuating between $50-215/ton. This trend continued in January and February of 2011, with Petkim’s LDPE prices maintaining a premium of around $100-160/ton over the company’s PP prices. The premium between LDPE and homo-PP fell below $100/ton at the start of March and homo-PP prices had gained a small premium over LDPE by the end of the month.
Homo-PP prices maintained a thin premium of $10-35/ton for the next three months before the premium on Petkim’s homo-PP prices expanded to around $40-65/ton from the start of July until the middle of August before LDPE prices regained some of their lost ground against homo-PP. The two products have been trading close to par for the past month. The producer lowered its prices for both LDPE and homo-PP by $40/ton this week, keeping the two products roughly at par for another week.
